PAL Holdings Inc., the listed company that primarily holds the interests of the Lucio Tan Group in Philippine Airlines, said Friday it secured regulatory approved to the increase in its authorized capital stock to P30 billion from the current P13.5 billion.
“The purpose of the proposed increase of authorized capital of the issuer is to accommodate the fresh infusion of capital into the company by an affiliate company of the Lucio Tan Group of Companies,” PAL Holdings told the Philippine Stock Exchange.
“The new capital will in turn be invested into issuer’s subsidiary, Philippine Airlines (PAL), pursuant to the court-supervised reorganization of PAL,” the listed company added.
PAL Holdings said its business and operations will not be affected by the proposed amendment to its Articles of Incorporation. “Only the capital structure of the issuer will change to reflect the fresh infusion of cash into the company. The new shares in support of the increase of capital will be issued at a premium over par,” it added.
Philippine Airlines had finalized an order for nine brand new Airbus A350-1000s at last year’s Paris Airshow. The new Airbus planes will form the backbone of Philippine Airlines’ ultra long haul fleet project that will mount direct flights from Manila to North America.
The new aircraft will be configured to seat a total 380 passengers in three separate cabins for Business Class, Premium Economy and Economy Class.
